Bangladesh’s footwear exports to the United States surged by more than 74 per cent in the first seven months of 2025, reflecting US buyers’ growing strategy to diversify sourcing destinations and reduce dependence on China.

According to data from OTEXA, an affiliate of the US Department of Commerce, the country earned $209.61 million from footwear exports between January and July this year, up from $120.32 million during the same period in 2024 — a 74.21 per cent increase year-on-year.

Industry experts said that the robust growth comes after a period of relatively static earnings, with Bangladesh’s footwear exports remaining close to $255 million in 2024 and $235 million in 2023.

In comparison, exports stood at $451.40 million in 2022, up from $274.78 million in 2021.

Experts said that Bangladesh had strong potential to expand its market share in the US and attract foreign investment, especially from China, if the country addressed domestic challenges such as making business easier, reducing long lead times, providing affordable land, investing in backward integration, and offering fiscal incentives like tax holidays.

OTEXA data showed that of the $209.61 million in footwear exports to the US, the vast majority — $191.73 million — comprised leather footwear shipments.

The overall US footwear import market reached $15.24 billion in the first seven months of 2025, a 5.61 per cent increase from $14.43 billion in the corresponding period of 2024.

While China’s footwear exports to the US fell by over 15 per cent to $4.15 billion, Vietnam recorded over 15 per cent growth to $5.61 billion.

Meanwhile, imports from Indonesia, Cambodia, and India grew by 27.81 per cent, 56.61 per cent, and 15.69 per cent respectively, reaching $1.70 billion, $689.86 million, and $271.40 million.

Hasnat Md Abu Obida, director of the Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) and managing director of Maf Shoes Ltd, said that sourcing and development houses are increasingly moving from China to Bangladesh due to high US tariffs and related uncertainties.

‘US buyers are seeking low-cost production hubs, as manufacturing in China has become expensive due to high tariffs,’ Obida said, explaining that Chinese traders are relocating in a scattered manner.

He said that Bangladesh must attract the full scope of Chinese business shifting abroad, including investment in backward linkage industries.

The LFMEAB leader also called for fiscal support such as tax holidays and the creation of dedicated export zones to attract both local and foreign investment.

A strong supply chain is critical, as Bangladesh currently imports nearly all raw materials and faces outdated and complex customs procedures.

According to the Bangladesh Export Processing Zones Authority (BEPZA), at least three Chinese companies and one South Korean company have signed agreements to invest in producing footwear and accessories.

BEPZA Executive Director ASM Anwar Parvez said Chinese company YiXin Bangladesh Company Ltd will invest $7.45 million at the BEPZA Economic Zone to produce 10 million pairs of footwear accessories annually.

Dunion Taiyang Sheng Shoes (BD) Co. Ltd will invest US$10.20 million to manufacture 2.1 million pairs of shoes, including sandals, flats, high heels, boots, and sports shoes.

Additionally, Gold Emperor (BD) Ltd, a Chinese company, will invest $10.08 million at Karnaphuli EPZ to produce shoes, while South Korean firm Giant BD Synthetic Co. Ltd will invest $8.62 million at BEPZA EZ to produce PU synthetic leather.

Together, these four companies are expected to create over 5,000 jobs.